Washington claims Huawei and Hikvision backed by Chinese military

The Trump administration determined that top Chinese firms, including Huawei Technologies and Hikvision are owned or controlled by the Chinese military forces, reported Reuters on Thursday.

As a result, Washington placed Huawei and Hikvision on a trade blacklist and they could be subject to more financial sanctions from the US.

Over the past year, the US has warned allies to exclude Huawei from the development of their 5G networks.

The Department of Defense (DOD) released a document listing 20 companies operating in the United States that Washington alleges are backed by the Chinese military said Reuters.

Hikvision called the allegations “baseless,” noting it was not a “Chinese military company,” and had never participated in any R&D work for military applications but would work with the United States government to resolve the matter.

It was unclear whether the White House would sanction the companies on the list.

According to a senior administration official who spoke to Reuters, the list can be seen as “a useful tool for the US Government, companies, investors, academic institutions, and likeminded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows.”